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WEF Global Competitiveness Report 2007-2008

German Economy Scores Number 1 in Infrastructure and Business
Sophistication
BERLIN, Oct. 31 /CNW/ - The World Economic Forum's (WEF) Global
Competitiveness Report 2007-2008 revealed that Germany is the global leader in
terms of infrastructure and business sophistication, and is one of the top
five most competitive economies in the world overall. This marked an
improvement for the country, which moved up from 7th place in 2006.
Germany's strong performance is thanks in large part to the country's
modern and innovative companies - it ranked 1st out of 131 economies in the
sophistication of its business sector, a category that accounts for factors
such as the quality and quantity of local suppliers and the sophistication of
the production process. In terms of overall "business competitiveness" - based
on the sophistication of company operations and the quality of the national
business environment - only the United States scored higher.
Additionally, no other economy tops Germany in the subcategory of
"capacity for innovation." The country is characterized by the value it places
on scientific and industrial advancement and actively strives to foster the
exchange of innovative ideas between the research and business communities.
The German government has set out to make Germany the most research-friendly
nation in the world by 2020 - the WEF indicators suggest it might not have to
wait that long.
With its modern transportation infrastructures, the German economy also
scored 1st place in "infrastructure," a category that encompasses the quality
and availability of its roadways, railways, seaports, and airports. In this
way, the WEF study clearly supports Germany's reputation as being Europe's
logistics hub. Other strongly performing areas include institutions and market
size, where Germany ranks among the top ten.
Based on a series of upcoming reforms designed to make the German economy
even more competitive - including generous grants for research and
development, a lowering of the corporate tax burden, and a substantial scaling
back of bureaucratic hurdles - Germany has every reason to be optimistic about
moving up even further in the next report.
The WEF derives their competitiveness index by taking an overview of a
nation's institutions, policies, and other factors that determine productivity
and sustainability. This includes a broad look at how individuals, companies,
and governments interact, as well as the strength of financial institutions,
infrastructure, and education. Over 11,000 business leaders participated in
the 2007-08 survey, from a record of 131 countries.